Aetna Looks to Acquire Humana for $37B

Aetna plans to acquire Humana for $37 billion in a deal that would see Humana stockholders receive $125 in cash and 0.8375 Aetna common shares for each Humana share.

After the deal, Aetna’s shareholders would own approximately 74% of the combined company and Humana’s shareholders would own approximately 26%.

The combined company would have projected 2015 operating revenue of around $115 billion, with approximately 56% from government sponsored programs including Medicare and Medicaid. It would also have over 33 million medical members, based on memberships as of March 31.

“The acquisition of Humana aligns two great companies and will significantly advance our strategy of more effectively serving members in a rapidly changing health care industry,” says Mark T. Bertolini, Aetna chairman and CEO.

A Reuters story quotes Bertolini as telling investors that the antitrust process with regulators has begun. “The process is underway,” he says in the Reuters story. “We’ve engaged in conversations with insurance commissioners, with governors, with Washington.”